DoD's $20.8M NGEN contract for IT services awarded to Peraton Enterprise Solutions LLC

Contract Overview

Contract Amount: $20,858,920 ($20.9M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2015-01-20

End Date: 2016-01-31

Contract Duration: 376 days

Daily Burn Rate: $55.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF NGEN; TRANSPORT AND ENTERPRISE SERVICES.

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $20.9 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: IGF::OT::IGF NGEN; TRANSPORT AND ENTERPRISE SERVICES. Key points: 1. The contract was awarded under a full and open competition, suggesting a competitive bidding process. 2. The fixed-price contract type aims to control costs by shifting risk to the contractor. 3. The contract duration of 376 days indicates a medium-term engagement for IT services. 4. The award was made by the Department of the Navy, a major component of the DoD. 5. The North American Industry Classification System (NAICS) code 541512 points to computer systems design services. 6. The contract was awarded in Virginia, a state with a significant federal contracting presence.

Value Assessment

Rating: fair

Benchmarking the value of this $20.8 million contract requires more detailed cost breakdowns and comparisons to similar IT service contracts within the DoD. Without specific performance metrics or a breakdown of services rendered, it is difficult to definitively assess value for money. However, the firm-fixed-price structure suggests an attempt to manage costs predictably. Further analysis would involve comparing the per-unit cost of services against industry benchmarks and other government contracts for comparable IT systems design.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 7 bidders suggests a reasonably competitive environment for this IT services contract. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government. The specific details of the bidding process and the evaluation criteria would provide further insight into the effectiveness of the competition.

Taxpayer Impact: A full and open competition with multiple bidders is generally favorable for taxpayers, as it encourages competitive pricing and can lead to cost savings compared to sole-source or limited competitions.

Public Impact

The Department of the Navy benefits from the provision of computer systems design services. This contract supports the operational needs of the Navy's IT infrastructure. The services are likely to impact Navy personnel and their ability to perform their duties. The geographic impact is primarily within the operational areas of the Department of the Navy, with a specific award location in Virginia.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the contractor's track record on this specific contract.
The contract value, while not exceptionally large, represents a significant investment in IT services that requires diligent oversight.
The firm-fixed-price nature, while beneficial for cost certainty, can sometimes lead to contractor pressure to cut corners if not properly monitored.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The firm-fixed-price contract type aligns with government objectives for cost control.
The contractor, Peraton Enterprise Solutions LLC, is a known entity in the federal contracting space, suggesting some level of established capability.

Sector Analysis

This contract falls within the broader IT services sector, specifically computer systems design. The federal IT services market is substantial, with agencies continually investing in modernizing and maintaining their technological infrastructure. Contracts like this are crucial for ensuring the operational readiness of military branches. Comparable spending benchmarks would involve looking at other DoD contracts for similar IT support and system integration services, considering factors like contract size, duration, and specific service requirements.

Small Business Impact

There is no indication from the provided data that this contract included a small business set-aside. The fact that it was awarded under full and open competition suggests that large businesses were likely the primary participants. Subcontracting opportunities for small businesses may exist, but this would depend on Peraton's subcontracting plan, which is not detailed here. The impact on the small business ecosystem is likely minimal unless significant subcontracting roles were allocated.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Navy. Accountability measures are inherent in the firm-fixed-price contract type, where the contractor is responsible for delivering services within the agreed-upon price. Transparency is generally facilitated through contract award databases like FPDS. The Inspector General's office for the Department of Defense would have jurisdiction for audits and investigations if any issues of fraud, waste, or abuse were identified.

Related Government Programs

NGEN (Next Generation Enterprise Network)
DoD IT Modernization Programs
Navy Enterprise IT Services
Computer Systems Design Services Contracts

Risk Flags

Contract awarded under firm-fixed-price, requiring careful monitoring of scope and deliverables.
IT services contracts can be susceptible to evolving technological requirements and cybersecurity threats.
The specific performance metrics and outcomes are not detailed, limiting a full assessment of value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.9 million to PERATON ENTERPRISE SOLUTIONS LLC. IGF::OT::IGF NGEN; TRANSPORT AND ENTERPRISE SERVICES.

Who is the contractor on this award?

The obligated recipient is PERATON ENTERPRISE SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $20.9 million.

What is the period of performance?

Start: 2015-01-20. End: 2016-01-31.

What was the specific scope of 'Computer Systems Design Services' under this contract?

The provided data indicates the contract falls under NAICS code 541512, 'Computer Systems Design Services.' This typically encompasses a range of activities including designing and integrating hardware and software, analyzing and designing IT systems, and providing IT consulting services. For this specific contract, the scope likely involved the design, development, integration, or modification of computer systems to meet the Department of the Navy's operational requirements. Without the full contract statement of work, the precise deliverables, such as network architecture design, software integration, or system configuration, remain unspecified. However, the broad category suggests a focus on the foundational elements of IT systems rather than day-to-day operational support or maintenance, though some overlap is possible.

How does the $20.8 million award value compare to other similar IT service contracts awarded by the Department of the Navy?

Comparing the $20.8 million award value requires context regarding the contract's duration and scope. This contract, with a duration of 376 days (approximately one year), represents a moderate investment. The Department of the Navy awards a wide spectrum of IT contracts, ranging from smaller, specialized services to multi-billion dollar enterprise-wide solutions. For a one-year contract focused on computer systems design, $20.8 million is a substantial amount, suggesting a significant project or a broad range of services. To provide a precise comparison, one would need to analyze other contracts with similar NAICS codes (541512), similar award values, and similar durations awarded within the same timeframe by the Navy or other DoD components. Benchmarking against larger, multi-year enterprise network contracts would not be appropriate due to differing scopes and scales.

What were the key performance indicators (KPIs) or success metrics for this contract?

The provided data does not include specific Key Performance Indicators (KPIs) or success metrics for this contract. In a firm-fixed-price contract, the primary success metric is the contractor's ability to deliver the defined scope of work within the agreed-upon price and timeframe. However, for computer systems design services, agencies typically establish more granular KPIs related to system functionality, performance benchmarks (e.g., speed, reliability), adherence to technical specifications, successful integration, and user satisfaction post-implementation. The absence of explicit KPIs in the summary data makes it challenging to quantitatively assess the contractor's performance beyond meeting the contractual obligations. A thorough review of the contract's Statement of Work (SOW) and any associated performance clauses would be necessary to identify these metrics.

What is Peraton Enterprise Solutions LLC's track record with the Department of Defense for similar IT services?

Peraton Enterprise Solutions LLC, and its parent company Peraton, have a significant track record of performing IT and technology services for the Department of Defense (DoD) and other federal agencies. They are known for providing a wide range of solutions including enterprise IT, cyber security, cloud services, and mission systems. While this specific contract was for $20.8 million and focused on computer systems design, Peraton has experience with larger, more complex programs within the DoD. Their history suggests they possess the capabilities to handle such contracts. However, the success and quality of past performance can vary across different contracts and programs. A deeper dive into Peraton's contract history with the DoD, including past performance reviews and any reported issues, would provide a more comprehensive understanding of their reliability for this type of work.

Were there any identified risks or challenges associated with the execution of this contract?

The provided summary data does not explicitly list risks or challenges encountered during the execution of this contract. However, common risks associated with IT system design contracts include technical complexity, integration issues with existing systems, scope creep, cybersecurity vulnerabilities, and potential delays. Given that this was a firm-fixed-price contract, a key risk for the contractor would be cost overruns if the project proved more complex or time-consuming than initially estimated. For the government, risks could include the system not meeting performance requirements or failing to integrate seamlessly. Without specific reports or audits related to this contract, a detailed risk assessment is not possible based solely on the provided data.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: HP, Inc. (UEI: 009122532)

Address: 13600 EDS DR, HERNDON, VA, 20171

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,858,920

Exercised Options: $20,858,920

Current Obligation: $20,858,920

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0003913D0013

IDV Type: IDC

Timeline